Legislature gives LIHEAP $5M Both chambers OK bill in unusually speedy fashion on first day

AUGUSTA – Maine lawmakers opened their 2006 session Wednesday with unusually speedy passage of a bill authorizing an immediate infusion of more money into the heating assistance program for low-income Mainers.

The bill, which calls for a $5 million appropriation for the Low Income Home Energy Assistance Program, also known as LIHEAP, was put on a fast track without going to committee and received final approval without a dissenting House or Senate vote.

Gov. John Baldacci is set to sign the bill Thursday morning.

The legislation was passed with strong bipartisan support amid further increases in heating oil prices, which a Republican leader said are causing an inconvenience for many and threatening to take a health toll on some.

“There is no room for partisanship on this issue,” House GOP leader David Bowles of Sanford said after the initial LIHEAP vote.

The latest survey from the state Office of Energy Independence and Security said heating oil prices in Maine have risen 2 cents a gallon during the past week and were averaging $2.34. The survey said prices are 45 cents per gallon higher than at this time last year.

The bill voted on Wednesday gives the Maine State Housing Authority $5 million to purchase additional heating fuel for households eligible under LIHEAP. An estimated 50,000 households could benefit this season as a result of the bill, which specifies that funds may only be used for fuel purchases.

Leaders from both major parties agreed on the language of the bill as lawmakers rallied behind efforts by the state’s congressional delegation to seek more federal funding for fuel assistance.

Meanwhile, a separate effort continues to collect $5 million in corporate and foundation donations for the same purpose.

The legislation says immediate action is needed because projected LIHEAP funding is not expected to increase sufficiently to offset the increased cost of fuel oil. It also cites federal reports that say fuel oil costs, already much higher than last year’s, could rise sharply if the winter is colder than usual.

Before the House vote, Speaker John Richardson, D-Brunswick, called for bipartisan cooperation as lawmakers face difficult issues that will include health care, taxes and education during the second year of the two-year session. He also pointed to past issues, including gay rights and property tax relief, in which both parties worked cooperatively.

“Indeed, we face many challenges in this short session,” said Richardson.

In a preview of a debate to come, representatives and workers wearing bright orange T-shirts joined with leaders from both parties and Baldacci in calling for a repeal of Maine’s tax on business equipment.

Repeal supporters said the tax discourages investment in the state, hampering job growth and putting existing jobs at risk.

“Eliminating this tax is the most important thing we can do to improve Maine’s economy,” said John Williams, president of the Maine Pulp and Paper Association.

A bill under consideration would phase out the Business Equipment Tax Reimbursement program and get rid of the business equipment tax itself for new investments starting in 2007.